Australia and the Association of South-East Asian Nations (ASEAN) have agreed to establish a comprehensive strategic partnership, as competition between China and the United States ramps up in the Asia-Pacific region.

Prime Minister Scott Morrison also announced a $154 million funding package in South East Asia for projects in health, security, crime, Covid and education.

The PM has also dismissed claims from the Indonesian and Malaysian governments stating the recently signed AUKUS agreement would spark rivalry in the region.